Ingenieur Vol.70 Apr-June 2017 ingenieur Apr-June 2017-FA | Page 75

The Kuala Lumpur Regional Centre for Arbitration (KLRCA) has reported an exponential increase in the number of payment disputes being referred and adjudicated with a very high success rate in favour of “unpaid parties” STEP 2: HAS THE DISPUTE CRYSTALLISED? ● ● ● ● Does the dispute fall within the definition of “payment” under Section 4 of CIPAA? ● ● ● ● Is the aggrieved party an “unpaid party” as defined under Section 4 of CIPAA? ● ● STEP 3: THE PAYMENT CLAIM ● ● ● ● “Unpaid party” to serve Payment Claim under Section 5 of CIPAA on the “non- paying party”. ● ● Mode of service shall be strictly in accordance with Section 38 CIPAA. Use Form 1: Payment Claim of the KLRCA Adjudication Rules & Procedures, Schedule 1 (KLRCA Forms). ● ● STEP 4: THE PAYMENT RESPONSE ● ● “Non-paying party” pursuant to Section 6 of CIPAA, can respond by making payment wholly, or partly of the claimed amount, or dispute the claim, or keep quiet. Mode of service shall be strictly in accordance with Section 38 CIPAA. Use Form 2: Payment Response of the KLRCA Forms. STEP 5: THE INITIATION OF ADJUDICATION ● ● ● ● “Non-paying party” can serve a Payment Response on the “unpaid party” within 10 working days of the receipt of the Payment Claim from the “unpaid party”. ● ● Claimant may serve Notice of Adjudication using Form 3 of the KLRCA Forms on the Respondent under Section 8 of CIPAA. Claimant to register the Adjudication with KLRCA using Form 3A of the KLRCA forms together with the Non-Refundable registration fee. Depending on the circumstances, either the “unpaid party” or the “non paying party” may become the Claimant per Section 7(1) of CIPAA. Mode of service shall be strictly in accordance with Section 38. 73